Drilling Down Into KEMET Corp. (KEM)

KEMET Corporation (KEM) is an interesting player in the Technology space, with a focus on Diversified Electronics. The stock has been active on the tape, currently trading at $18.65, down from yesterday’s close by -11.95%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

KEMET Corporation (KEM) currently trades with a market capitalization of $1.06 Billion. That value represents a market adjusting for revenues that have been growing by 62.96 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $70.69 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.41 on a per share basis this quarter. Perhaps, that suggests something about why 6.68% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, KEMET Corporation recorded a 52-week high of $27.35. It is now trading 8.7% off that level. The stock is trading $18.75 its 50-day moving average by 0.1%. The stock carved out a 52-week low down at $11.73.

In recent action, KEMET Corporation (KEM) has made a move of -0.85% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.08, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 5.92% with $51.38 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of KEM.

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